Netflix Inc.
[NFLX]
NASDAQ
MVPro™ Score: 63/100
Next Earnings: 21 Apr 2026
[NFLX]
NASDAQ
MVPro™ Score: 63/100
Next Earnings: 21 Apr 2026
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| Capitalization (mln USD) | 357,139 |
| Revenue (mln USD) | 12,050 |
| EBITDA (mln USD) | 7,852 |
| Net Income (mln USD) | 2,418 |
| Net Margin | 20.07% |
| EPS Ratio (TTM, USD) | 2.6 |
| P/E Ratio (TTM) | 32.53 |
| P/S Ratio (TTM) | 8.28 |
| D/E Ratio | 1.09 |
| EV/EBITDA (TTM) | 13.07 |
| CAPEX (Q/Q) | -60.63% |
| Dividend Yield | 0.00% |
Revenue, EBITDA & Net Income
Company Overview
Netflix Inc. is an American entertainment company founded in 1997 by Reed Hastings and Marc Randolph, originally as a DVD rental service by mail. Headquartered in Los Gatos, California, the company transitioned to streaming in 2007 and has since become one of the world’s leading providers of subscription-based video content.
Netflix offers a vast library of films, documentaries, and television series across multiple genres and languages, with a strong focus on original productions such as Stranger Things, The Crown, and Bridgerton. The platform operates in over 190 countries and has millions of subscribers worldwide. As of 2023, Netflix is co-led by Co-CEOs Ted Sarandos and Greg Peters, who oversee both content and technological innovation.
The company’s mission is to entertain the world by providing high-quality, accessible storytelling. Netflix is committed to ESG principles, investing in sustainable production practices, promoting diversity and inclusion on screen and behind the scenes, and minimising its environmental impact. Through continued global expansion, localised content, and investment in original programming, Netflix aims to retain its leadership position in the competitive streaming industry.
🔴 P/E (Price to Earnings, TTM)
Price-to-earnings (P/E) ratio for the most recent quarter is 34.1, compared to 46.5 in the previous quarter, with a longer-term trend value of 33.2. This decline in the P/E ratio may indicate a shift in market sentiment, where investors are placing a lower premium on future earnings growth. A falling P/E ratio could be driven by slowing revenue growth, increased risk perception, or improved earnings performance that is outpacing stock price growth.
P/E Ratio
Source: MarketVectors.Pro, Netflix Financial Reports (TTM)
P/E Ratio
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🟢 EPS (Earnings Per Share, TTM)
Netflix's earnings per share (EPS) for the most recent quarter is 2.60 USD (+8.2%), compared to 2.40 USD in the previous quarter, with a longer-term trend value of 2.73 USD. This quarterly increase in EPS suggests improved profitability and operational efficiency.
EPS
Source: MarketVectors.Pro, Netflix Financial Reports (TTM, USD)
EPS
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🔴 P/B (Price to Book)
Price-to-book (P/B) ratio for the most recent quarter stands at 14.05 (-24.7%), compared to 18.67 in the previous quarter, with a long-term trend value of 13.80. This decline in the P/B ratio may indicate a more conservative market stance on the company’s asset valuation, potentially influenced by shifting investor sentiment, changes in financial fundamentals, or broader economic conditions.
P/B Ratio
Source: MarketVectors.Pro, Netflix Financial Reports
P/B Ratio
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🟡 EBIT
EBIT for Netflix in the most recent quarter is 2,956 million USD, compared to 3,248 million USD in the previous quarter, with a long-term trend value of 6,998 million USD. This decline may indicate increased costs, lower revenue, or market challenges impacting profitability, requiring strategic adjustments.
EBIT
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
EBIT
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🟡 Risk Assessment
Below is a factual risk assessment for Netflix Inc., identifying key risks that may affect the company’s performance, stability, and long-term strategy.
Market Risk
Netflix faces intense competition from both traditional media companies and newer streaming platforms such as Disney+, Amazon Prime Video, and Apple TV+. Consumer preferences continue to shift rapidly, making it difficult to predict long-term content demand. Market saturation in key regions like North America may limit future subscriber growth.
Financial Risk
While Netflix generates substantial revenue, it carries high content production costs and significant debt used to finance original programming. Fluctuations in currency exchange rates may impact international revenues. Any slowdown in subscriber growth could put pressure on profitability and investor confidence.
Operational Risk
The company is heavily dependent on continuous content production and a stable technological infrastructure to deliver streaming services globally. Disruptions in supply chains or production delays, particularly due to geopolitical or health-related events, may impact content delivery. Additionally, data breaches or service outages could harm customer trust and brand reputation.
Regulatory Risk
Netflix must navigate a complex and evolving regulatory landscape in each market it serves, including content restrictions, taxation, and data privacy regulations. Increased scrutiny from governments may lead to local content quotas or restrictions on algorithms and advertising models. Non-compliance could result in fines, content removal, or operational limitations.
Overall Risk Assessment
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🟡 Piotroski F-Score Analysis
Piotroski F-Score analysis is a robust methodology designed to assess the financial strength and operational efficiency of companies, providing valuable insights for investment decision-making.
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
| Previous TTM | Current TTM | Score | |
| Net Income | 8,712 | 10,979 | 1 |
| ROA | 17.10% | 20.36% | 1 |
| Net Operating Cash Flow | 1,108 | 845.5 | 1 |
| OCF > Net Income | -1,350 | -830 | 0 |
| Long-Term Debt | 53,356 | 56,391 | 0 |
| Current Ratio | 1.22 | 1.19 | 0 |
| New Shares Issued (mln) | 4,390 | 4,222 | 1 |
| Gross Margin | 46.06% | 48.49% | 1 |
| Total Asset Turnover Ratio | 0.77 | 0.84 | 1 |
| Piotroski F-Score | 6/9 |
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🟢 Altman Z-Score Analysis
Altman Z-Score is a widely recognised financial metric used to evaluate the risk of bankruptcy for companies. It is particularly relevant for assessing the creditworthiness of manufacturing and industrial companies but has also been adapted for other industries.
Source: MarketVectors.Pro, Netflix Financial Reports
| Q4 25 | |||
| Altman Z-Score (TTM) | 13.61 | ||
| 0 | Distress | 1.8 | Grey | 2.99 | Safe | 4 |
Source: MarketVectors.Pro, Netflix Financial Reports
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🔴 Key Assets Components
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
As of last quarter the company reported total assets of 55,597 million USD, representing an increase of 3.7% compared to the previous year the same quarter 53,630 million USD. The largest contributor to this change in current assets was Receivables, which grew by 93.5% to 2,583 million USD from 1,335 million USD.
Assets
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Cash & Short-Term Inv | 9,584 | 9,062 | -5.45% |
| Inventory | 0 | 0 | 0.00% |
| Receivables | 1,335 | 2,583 | 93.48% |
| Total Current Assets | 13,100 | 13,020 | -0.61% |
| Property and Equipment | 1,594 | 2,004 | 25.72% |
| Goodwill, Intangibles | 32,452 | 32,778 | 1.00% |
| Other Long-Term Assets | 6,484 | 7,794 | 20.20% |
| Total Assets | 53,630 | 55,597 | 3.67% |
Assets
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🔴 Key Liabilities & Equity
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Total current liabilities increased by 2.1%, indicating a potential growth in operational activities. This change may affect the company's ability to manage its working capital efficiently. Long-term debt decreased by 2.4%, suggesting a reduction in financial leverage. This shift could have implications for the Netflix's financing costs and overall debt strategy.
Liabilities & Equity
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Accounts Payable | 899 | 900 | 0.11% |
| Accrued Expenses, Other | 2,156 | 3,220 | 49.35% |
| Total Current Liabilities | 10,755 | 10,980 | 2.09% |
| Long-term Lease | 0.0001 | 0.0001 | 0.00% |
| Long-term Debt | 13,798 | 13,464 | -2.42% |
| Total Liabilities | 28,887 | 28,981 | 0.33% |
| Shareholders’ Equity | 24,744 | 26,615 | 7.56% |
Liabilities & Equity
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🟡 Income Statement Analysis
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
As of Q4 25, Netflix reported a revenue of 12,050 million USD, marking an increase of 17.6% compared to the previous year to 10,247 million USD. Operating expenses rose to 2,572 million USD, increasing by 33.1% year-on-year from 1,933 million USD.
Revenue & Net Income
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Revenue | 10,247 | 12,050 | 17.60% |
| Operating Expenses | 1,933 | 2,572 | 33.06% |
| Operating Income | 2,273 | 2,956 | 30.05% |
| Net Income | 1,869 | 2,418 | 29.37% |
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Revenue & Net Income
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🟡 Cash Flow Analysis
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
The company’s cash flow performance over the year demonstrates varied trends across key categories. Net operating cash flows increased by 37.4% from 1,537 million USD to 2,112 million USD, reflecting stronger cash generation from core business activities. Net investing cash flows decreased by 62.0% from -158 million USD to -256 million USD, indicating higher expenditure on investments, potentially related to strategic initiatives.
Operating Cash Flow
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
| Q4 24 | Q4 25 | Change (%) | |
| Net Operating Cash Flows | 1,537 | 2,112 | 37.41% |
| Net Investing Cash Flows | -158 | -256 | -62.03% |
| Net Financing Cash Flows | -678 | -2,077 | -206.34% |
| Net Cash Flow, Equivalents | 701 | -221 | -131.53% |
Operating Cash Flow
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🟢 EBITDA
Netflix's EBITDA for the most recent quarter is 7,852 milion USD (+7.0%), compared to 7,338 milion USD in the previous quarter, with a long-term trend value of 9,094 milion USD. This increase in EBITDA suggests improved operational efficiency and revenue growth, indicating stronger core business performance.
EBITDA
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
EBITDA
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🟡 Net Income
Net income for the most recent quarter is 2,418 milion USD (-5.0%), compared to 2,546 milion USD in the previous quarter, with a long-term trend value of 18,371 milion USD. This decline in net income may indicate increased operational costs, lower revenue generation, or external market challenges affecting profitability.
Net Income
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Net Income
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🟢 ROE (Return on Equity, %) ★ Buffett's Key Metric
Netflix's return on equity (ROE) for the most recent quarter is 41.3%, compared to 40.2% in the previous quarter, with a long-term trend value of 41.4%. This increase in ROE indicates improved profitability and more efficient use of shareholders' equity to generate earnings.
ROE Indicator
Source: MarketVectors.Pro, Netflix Financial Reports (%)
ROE Indicator
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🟢 ROA (Return on Assets, %)
Return on assets (ROA) for the most recent quarter is 19.7%, compared to 19.0% in the previous quarter, with a long-term trend value of 20.6%. This increase in ROA indicates improved efficiency in utilizing company assets to generate profits. The higher return suggests stronger operational performance and effective resource allocation.
ROA Indicator
Source: MarketVectors.Pro, Netflix Financial Reports (%)
ROA Indicator
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🟡 Operating Margin (%) ★ Buffett's Key Metric
Netflix's operating margin for the most recent quarter is 24.5%, compared to 28.2% in the previous quarter, with a long-term trend value of 56.1%. This decline in operating margin may indicate increased production or operational costs, pricing pressures, or lower revenue retention. A reduction in margin suggests that certain cost components are weighing on profitability, potentially requiring adjustments in expense management.
Operating Margin
Source: MarketVectors.Pro, Netflix Financial Reports (%)
Operating Margin
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🟡 Net Margin (%) ★ Buffett's Key Metric
Net margin for the most recent quarter is 20.1%, compared to 22.1% in the previous quarter, with a long-term trend value of 146.7%. This decline in net margin may indicate rising operational costs, pricing pressures, or changes in revenue mix that are affecting overall profitability. A lower net margin suggests that expenses have grown at a faster rate than revenue, potentially requiring adjustments in cost management or pricing strategy.
Net Margin
Source: MarketVectors.Pro, Netflix Financial Reports (%)
Net Margin
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🟢 Long-Term Debt & EBITDA
The current long-term debt is 13,464 million USD, and EBITDA is 7,852 million USD. The long-term debt to EBITDA ratio for the most recent quarter is 171.5%, compared to 197.1% in the previous quarter, with a long-term trend value of 145.2%. This decline in the long-term debt to EBITDA ratio suggests an improvement in the company's ability to manage and service its long-term debt obligations. The lower ratio indicates stronger financial flexibility, potentially driven by higher earnings generation or reduced leverage.
Long-Term Debt to EBITDA Ratio
Source: MarketVectors.Pro, Netflix Financial Reports (%)
The current level remains within the safe range, reflecting a strong balance sheet and manageable debt levels. A declining trend in this ratio is typically a positive sign for investors, as it implies reduced financial risk and an improved capacity to meet long-term liabilities.
Long-Term Debt & EBITDA
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Long-Term Debt to EBITDA Ratio
The current level remains within the safe range, reflecting a strong balance sheet and manageable debt levels. A declining trend in this ratio is typically a positive sign for investors, as it implies reduced financial risk and an improved capacity to meet long-term liabilities.
Long-Term Debt & EBITDA
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🟢 Long-Term Debt & Assets
The current long-term debt is 13,464 million USD, and total assets are 55,597 million USD, resulting in a debt ratio of 24.2%. This decline in the long-term debt-to-assets ratio indicates an improvement in financial stability, as the company is reducing its reliance on long-term debt relative to its total assets. This suggests either an increase in total assets or a reduction in outstanding long-term liabilities.
Long-Term Debt to Assets Ratio
Source: MarketVectors.Pro, Netflix Financial Reports (%)
The current level remains within the safe range <40%, reflecting a strong balance sheet and a conservative debt structure. A declining debt-to-assets ratio is generally seen as a positive signal for investors, as it implies lower financial risk and greater balance sheet resilience.
Long-Term Debt & Assets
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Long-Term Debt to Assets Ratio
The current level remains within the safe range <40%, reflecting a strong balance sheet and a conservative debt structure. A declining debt-to-assets ratio is generally seen as a positive signal for investors, as it implies lower financial risk and greater balance sheet resilience.
Long-Term Debt & Assets
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🟡 Long-Term Debt & Equity ★ Buffett's Key Metric
The current long-term debt is 13,464 million USD, while Total Equity stands at 26,615 million USD, resulting in a debt-to-equity ratio of 50.6%. This decline in the long-term debt-to-equity ratio suggests improved financial strength, as the company is reducing its reliance on debt financing relative to its equity base. This may be the result of increased retained earnings, debt repayments, or higher equity financing, all of which contribute to a healthier balance sheet.
Long-Term Debt to Equity Ratio
Source: MarketVectors.Pro, Netflix Financial Reports (%)
Although the ratio has decreased, it is still within the healthy range 50%–150%, suggesting that debt levels remain manageable and in line with industry standards. A declining debt-to-equity ratio is generally a positive signal for investors, reflecting reduced leverage and improved financial flexibility.
Long-Term Debt & Equity
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Long-Term Debt to Equity Ratio
Although the ratio has decreased, it is still within the healthy range 50%–150%, suggesting that debt levels remain manageable and in line with industry standards. A declining debt-to-equity ratio is generally a positive signal for investors, reflecting reduced leverage and improved financial flexibility.
Long-Term Debt & Equity
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🟡 Equity to Assets
The current equity is 26,615 million USD, while total assets stand at 55,597 million USD, resulting in an equity-to-assets ratio of 47.9%. This increase in the equity-to-assets ratio indicates a strengthening financial position, as the company is relying more on its own capital rather than external debt. The rise suggests higher retained earnings, new equity issuance, or asset appreciation, all of which contribute to long-term financial stability.
Equity to Assets Ratio
Source: MarketVectors.Pro, Netflix Financial Reports (%)
Although the ratio has increased, it is still within the monitoring range 40%–50%, suggesting that while financial leverage is moderate, continued assessment is recommended. A rising equity-to-assets ratio is generally a positive sign for investors, as it indicates lower financial risk and improved capital structure.
Equity & Assets
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Equity to Assets Ratio
Although the ratio has increased, it is still within the monitoring range 40%–50%, suggesting that while financial leverage is moderate, continued assessment is recommended. A rising equity-to-assets ratio is generally a positive sign for investors, as it indicates lower financial risk and improved capital structure.
Equity & Assets
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🟢 Quick Ratio
The quick ratio for Netflix is 1.19, compared to 1.33 in the previous quarter, with a long-term trend value of 1.22. This decline in the quick ratio may indicate lower liquidity, reduced cash reserves, or an increase in short-term liabilities. Although the ratio has declined, it remains above 1.0, which still reflects strong liquidity; however, the downward trend should be monitored.
Quick Ratio
Source: MarketVectors.Pro, Netflix Financial Reports
Quick Ratio
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🟢 Current Ratio
The current ratio for Netflix is 1.19, compared to 1.33 in the previous quarter, with a long-term trend value of 1.22. This decline in the current ratio may indicate a higher reliance on short-term liabilities, reduced cash flow, or increased working capital constraints. Despite the decrease, the ratio remains within the 1.0–2.0 range, which is still considered healthy, though further monitoring of working capital efficiency is advisable.
Current Ratio
Source: MarketVectors.Pro, Netflix Financial Reports
Current Ratio
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🟡 Net Working Capital
The net working capital (NWC) for Netflix in the most recent quarter is 2,040 million USD, compared to 3,231 million USD in the previous quarter, with a long-term trend value of 3,019 million USD.
Net Working Capital
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Net Working Capital
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🟢 Inventory Turnover Ratio
The inventory turnover ratio for Netflix is not available, as the company does not report inventory in its financial statements. This may indicate that Netflix operates in a service-based or software-driven industry, where inventory is not a significant component of operations.
Inventory Turnover Ratio
Source: MarketVectors.Pro, Netflix Financial Reports
Inventory Turnover Ratio
🔴 Asset Turnover Ratio
The assets turnover ratio for Netflix in the most recent quarter is 0.81, compared to 0.79 in the previous quarter. This increase in the assets turnover ratio indicates that Netflix is utilizing its assets more efficiently to generate revenue. A rising ratio often reflects improved sales performance, better assets utilization, or operational efficiency. The ratio has fallen below the 1.0, suggesting that Netflix may have a high level of assets relative to revenue generation. This could indicate underutilized resources or the need for improved asset efficiency.
Assets Turnover Ratio
Source: MarketVectors.Pro, Netflix Financial Reports
Assets Turnover Ratio
🔴 Book Value / Share
The book value per share (BVPS) is a key valuation metric that represents the equity value per outstanding share. Calculated by dividing total book value by the number of shares, it helps assess whether a stock trades above or below its book value.
Source: MarketVectors.Pro, Netflix Financial Reports (USD)
Book Value per Share Valuation
Source: MarketVectors.Pro, Netflix Financial Reports (USD, generated on 27 February 2026)
| Q4 24 | Q4 25 | Change (%) | |
| Book Value / Share | 5.64 | 6.3 | 11.70 % |
Book Value per Share Valuation
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🟡 Graham Method
The intrinsic value of Netflix’s stock is calculated using Benjamin Graham’s formula, which takes into account the current earnings per share (EPS) and an assumed growth rate (g), providing a simplified yet insightful perspective on a company’s value.
Benjamin Graham Valuation
Source: MarketVectors.Pro, Netflix Financial Reports (USD, generated on 27 February 2026)
Benjamin Graham Valuation
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🟡 Discounted Cash Flow ★ Buffett's Key Metric
The discounted cash flow (DCF) method is used to estimate Netflix’s intrinsic value by projecting future cash flows and discounting them to their present value. This approach considers the company’s potential to generate cash flows in the future, taking into account the time value of money and associated risks.
The terminal value represents the value of Netflix’s cash flows beyond the five-year forecast horizon. It is calculated using the Gordon Growth Model, assuming a perpetual growth rate of 4.0% and WACC of 10.5%. The calculated terminal value is 434,953 million USD.
Total Intrinsic Value Calculations
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Assuming 4,222 million shares outstanding, the intrinsic value per share is approximately 76.70 USD. The current market price of Netflix’s stock is 84.59 USD. Discounted cash flow valuation indicates that the stock is 10.3% overvalued, trading above its intrinsic value.
Discounted Cash Flow Valuation
Source: MarketVectors.Pro, Netflix Financial Reports (USD, generated on 27 February 2026)
| Value | |
| Present Value of FCFs | 59,814 |
| Present Value of Terminal Value | 264,016 |
| Total Intrinsic Value | 323,830 |
Discounted Cash Flow Valuation
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🟢 Assets Correlation
The Pearson correlation analysis for Netflix examines the relationship between share price and key financial indicators. Gross profit has a correlation of 0.93, which indicates a strong relationship, meaning profitability is a key driver of stock price movements. Operating income is correlated at 0.91, highlighting a strong relationship between operating profitability and market valuation.
Source: MarketVectors.Pro, Netflix Financial Reports
Current liabilities are correlated at 0.87, implying that short-term obligations are closely monitored by investors, influencing stock valuation. Total assets have a correlation of 0.86, confirming a strong relationship between asset growth and market performance.
Key Financial Indicators Growth Dynamics
Source: MarketVectors.Pro, Netflix Financial Reports, Index=100 on Q2 11
| Pearson Correlation | |
| Share Price | 1 |
| Gross Profit | 0.93 |
| Operating Income | 0.91 |
| Current Liabilities | 0.87 |
| Total Assets | 0.86 |
Key Financial Indicators Growth Dynamics
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🟡 FCF Margin Scenarios
• Optimistic Scenario: 26%, driven by operational efficiencies and cost optimisation.
• Base Case: 20% of revenue, consistent with historical trends.
• Pessimistic Scenario: 14%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
An approximately 6-percentage-point increase in the FCF margin to 26%, results in an additional 2,737 milion USD in FCF, highlighting the critical role of operational efficiency. Conversely, a decrease to 14% reduces FCF by 2,685 milion USD, illustrating the significant impact of profitability on cash flow generation.
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
• Base Case: 20% of revenue, consistent with historical trends.
• Pessimistic Scenario: 14%, reflecting higher operating and labour costs. Impact of Changes in FCF Margin
| FCF Margin (%) | Revenue TTM | FCF TTM | Difference | |
| Optimistic | 26% | 45,182 | 11,747 | 2,737 |
| Base Case | 20% | 45,182 | 9,010 | – |
| Pessimistic | 14% | 45,182 | 6,325 | -2,685 |
Projected FCF Margin Scenarios Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
🟡 Operating Costs Scenarios
• Optimistic Scenario: 68%, reflecting enhanced efficiency and lower costs.
• Base Case: 71% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 73%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Reducing operational costs to 68% of revenue leads to a 1,133 milion USD increase in operating profit, emphasising the significance of cost control in enhancing margins. Increasing costs to 73% of revenue results in a 1,126 milion USD decline in operating profit, highlighting the sensitivity of profitability to rising expenses.
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
• Base Case: 71% of revenue, aligned with historical trends and cost structures.
• Pessimistic Scenario: 73%, driven by rising wages and increased energy costs. Impact of Changes in FCF Margin
| Operating Costs (%) | Revenue TTM | Operating Profit | Difference | |
| Optimistic | 68% | 45,182 | 14,458 | 1,133 |
| Base Case | 71% | 45,182 | 13,325 | – |
| Pessimistic | 73% | 45,182 | 12,199 | -1,126 |
Projected Operating Costs Scenarios Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
🟡 Revenue Growth Scenarios
Optimistic Scenario: Projected to grow by 15% annually, driven by:
• Robust macroeconomic conditions.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 13% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 10% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
Source: MarketVectors.Pro, Netflix Financial Reports (million USD, TTM)
The projected revenue for the next twelve months varies depending on the scenario. Under the optimistic scenario, revenue is expected to increase by 15% to 51,997 million USD, reflecting strong market growth and operational efficiency. In the base case scenario, revenue is forecasted to grow by 13% to 50,861 million USD, assuming stable economic conditions and consistent business expansion. However, under the pessimistic scenario, revenue is projected to increase by 10% to 49,725 million USD, reflecting potential economic slowdowns or adverse market conditions.
Projected Revenues Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
The variation between projected scenarios highlights the Netflix's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
• Strong industry growth with minimal disruptions.
• Favorable regulatory and competitive environment. Base Case: Projected to grow by 13% annually, driven by: • Stable macroeconomic conditions.
• Balanced market growth with manageable risks.
• Limited external disruptions from regulation or supply chains. Pessimistic Scenario: Projected to grow by 10% annually, driven by: • Global economic uncertainty and potential downturn.
• Increased competition and rising operational costs.
• Regulatory and supply chain challenges impacting business operations.
| Revenue | Net Income | Revenue (Next) | Net Income (Next) | |
| Optimistic | 45,182 | 10,979 | 51,997 | 12,635 |
| Base Case | 45,182 | 10,979 | 50,861 | 12,359 |
| Pessimistic | 45,182 | 10,979 | 49,725 | 12,083 |
Projected Revenues Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
The variation between projected scenarios highlights the Netflix's ability to perform across a range of market conditions. The growth even in the pessimistic case reflects a degree of resilience and suggests a strong underlying business model. This outlook supports confidence in management’s ability to navigate uncertainty while sustaining forward momentum. Scenario analysis enhances strategic visibility, helping stakeholders understand the potential bandwidth of future results.
🟡 Net Income Growth Scenarios
The projected net income for the next twelve months varies depending on the scenario. Under the optimistic scenario, net income is expected to increase by 15% to 12,635 million USD, reflecting improved profitability and strong financial performance. In the base case scenario, net income is forecasted to grow by 13% to 12,359 million USD, assuming stable market conditions and effective cost management. However, under the pessimistic scenario, net income is projected to increase by 10% to 12,083 million USD, reflecting potential challenges such as higher operational costs or slowing revenue growth.
Projected Net Income Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Netflix is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
Projected Net Income Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
The projected resilience in net income across all scenarios suggests a stable underlying profitability profile. Even under adverse assumptions, the Netflix is expected to maintain earnings growth, indicating effective cost controls and strong core operations. This consistency can help support valuation multiples and reduce perceived investment risk. Scenario modeling enhances transparency and strengthens the credibility of financial forecasting in the eyes of stakeholders.
🟡 Financial Performance Overview
Netflix demonstrated stronger financial performance in the most recent period, reflecting strong revenue growth, operational efficiency, and profitability improvements revenue increased by 17.6% year-over-year, reaching 12,050 million USD, supported by strong sales performance across all key markets. At the same time, EBITDA grew by 20.5% year-over-year, totaling 7,852 million USD, driven by cost optimization and higher-margin business segments.
Revenue & Net Income
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Notably, net income surged by 29.4% year-over-year, reaching 2,418 million USD, negatively impacting Netflix's net margin, which expanded to 20.1%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Revenue & Net Income
Notably, net income surged by 29.4% year-over-year, reaching 2,418 million USD, negatively impacting Netflix's net margin, which expanded to 20.1%. This growth reflects effective expense control and revenue expansion, strengthening the company’s bottom-line performance.
Key Performance Indicators (KPIs)
Source: MarketVectors.Pro, Netflix Financial Reports (YoY)
Valuation & Market Position
Netflix’s valuation metrics indicate a strengthened financial standing. The EV to EBITDA (TTM) ratio currently stands at 13.07, decreasing from 17.51, reflecting a dual shift – rising operational performance and declining market valuation. This indicates a balanced valuation, with stable investor perception
EV to EBITDA Ratio
Source: MarketVectors.Pro, Netflix Financial Reports (TTM)
The EV to EBITDA trendline illustrates Netflix’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
Source: MarketVectors.Pro, Netflix Financial Reports (TTM)
Meanwhile, the P/E (Price to Earnings) ratio has declined to 34.1, down from 44.0 a year ago, potentially signaling a more balanced market outlook on Netflix’s earnings potential. The P/S (Price to Sales) ratio has declined to 8.28, compared to 10.14 a year ago, suggesting a more conservative valuation stance among investors.
| Change (%) | |
| Revenue Growth | 17.6% |
| EBITDA Growth | 20.5% |
| Net Income Growth | 29.4% |
| Net Margin | 20.1% |
| EPS | 31.0% |
EV to EBITDA Ratio
The EV to EBITDA trendline illustrates Netflix’s valuation trajectory, with a declining enterprise value despite improving earnings, possibly signaling undervaluation or market pessimism.
| Ratio (TTM) | |
| EV/EBITDA | 13.07 |
| P/E Ratio | 32.53 |
| P/S Ratio | 8.28 |
Cash Flow & Liquidity ★ Buffett's Key Metric
Netflix is experiencing a weakened cash flow position, reflecting potential liquidity challenges. The decline in cash flow may indicate increased operational costs or reduced cash inflows, requiring closer financial monitoring and strategic adjustments.
• Free Cash Flow (FCF) – totaled 1,873 million USD, indicating a decline in available cash resources, requiring enhanced financial oversight.
• Net Operating Cash Flow – declined by 23.7% year-over-year, reaching 846 million USD, suggesting weaker cash inflows from operating activities.
• Long-term debt – increased by 5.7%, which may lead to higher financial leverage and increased interest obligations.
Netflix’s ability to generate declining cash flow while increasing debt reinforces its financial flexibility, though ongoing financial management is essential to sustain long-term growth and strategic investments.
Free Cash Flow
Source: MarketVectors.Pro, Netflix Financial Reports (million USD)
Netflix's financial performance in the most recent quarter shows that EBITDA reached 7,852 million USD, reflecting improved operational efficiency and earnings growth. The company's return on equity (ROE) is 41.3%, suggesting enhanced capital utilization and stronger profitability. The long-term debt-to-equity ratio stands at 50.6%, indicating a more resilient balance sheet and lower financial risk. The quick ratio is 1.19, highlighting tightened liquidity conditions and the need for cautious cash management. The EV/EBITDA ratio is currently 13.07x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Netflix’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Netflix’s long-term prospects remain positive.
Free Cash Flow
Netflix's financial performance in the most recent quarter shows that EBITDA reached 7,852 million USD, reflecting improved operational efficiency and earnings growth. The company's return on equity (ROE) is 41.3%, suggesting enhanced capital utilization and stronger profitability. The long-term debt-to-equity ratio stands at 50.6%, indicating a more resilient balance sheet and lower financial risk. The quick ratio is 1.19, highlighting tightened liquidity conditions and the need for cautious cash management. The EV/EBITDA ratio is currently 13.07x, reflecting a balanced or attractive valuation level relative to earnings. Overall, Netflix’s financial health remains strong, with consistent revenue expansion, cost efficiency improvements, and strong liquidity. Meanwhile, the P/E ratio is declining, while Netflix’s long-term prospects remain positive.
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